tag:blogger.com,1999:blog-4490468598422095060.post2891475371124617483..comments2024-03-17T07:55:12.096-07:00Comments on FOFOA: Frightening PredictionFOFOAhttp://www.blogger.com/profile/17152544684132776239noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4490468598422095060.post-40185189676696951922010-03-30T17:47:43.840-07:002010-03-30T17:47:43.840-07:00Hello wismadche,
Best guess of total CB lending...Hello wismadche, <br /><br />Best guess of total CB lending, liqudity and explicit guarantees is around $25T-$30T. The problem, though, is the implicit guarantees that exist. They include the $100T+ of promised but unfunded sovereign liabilities for which the CB's will ultimately be on the hook. <br /><br />Sincerely,<br />FOFOAFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-65479334446556786082010-03-30T17:37:11.491-07:002010-03-30T17:37:11.491-07:00Fofoa,
It is becoming clearer. The massive price...Fofoa,<br /><br />It is becoming clearer. The massive price deflation you mention is because as the deleveraging occurs (i.e., people and firms either pay off loans or (mostly) default on them), there is no money to buy “stuff” so the natural laws of supply and demand force prices lower and lower. Banks get hammered on their capitalization ratios as their assets fall in value which means they Anonymousnoreply@blogger.com